Subbie Tip #14 – How To Evidence Your Income Without Payslips
We often get asked if it’s possible to evidence income if you can’t get copies of your CIS payslips to support your mortgage application.
Ideally you want your lender to calculate your mortgage affordability based on your Gross CIS income and the lenders I access daily are more than willing to do so provided you can supply the right income evidence; generally your CIS payslips/vouchers to provide a record of earnings and your bank statements to confirm that income.
However, I know it can sometimes be difficult to get your CIS payslips from your construction firm so what’s the answer?
Happily, not all lenders insist that you provide CIS payslips; whilst they are always the preferred documentary evidence, some lenders are beginning to appreciate that many smaller construction companies simply don’t have an automatic payroll system in place and that getting backdated CIS vouchers issued can be a major challenge! For that reason, some lenders will allow you to support your mortgage application with invoices that you create yourself and deliver to your construction firm.
If you are going to provide your own invoices to support your mortgage application, they must include the following specific information:
- Your name
- The name of the company you are invoicing
- Your UTR (unique tax reference)
- Your NI (National Insurance) Number
- The date of the invoice and the time period it covers
- The gross payment due and the work it relates to
- Any deductions including 20% CIS tax
- The net income you expect to be paid
Another simple alternative would be to download a copy of the ‘Construction Industry Scheme Payment and Deduction Statement’ form to complete either alone or in conjunction with your construction firm; making sure you complete a copy for each relevant time period to correspond with bank statements. You can download a copy from our site here or it’s available direct from the HM Revenue & Customs website.
Whichever method you use to evidence your income; I am always happy to discuss your individual situation and offer more advice on any aspect of securing a mortgage or to help find the right lender for you. Feel free to call me on 08000 306705 or drop me an email to: david@cismortgage.co.uk
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE